Kritika Handa
Myth: Paying off debt will immediately improve your credit score. Fact: It can take time for credit bureaus to update your score after debt repayment.
Myth: Checking your own credit score lowers it. Fact: Personal inquiries have no impact; only hard inquiries by lenders affect your score.
Myth: Earning more money leads to a better credit score. Fact: Credit scores are based on credit behavior, not income levels.
Myth: There is a single credit score for everyone. Fact: Different credit bureaus and scoring models result in multiple credit scores.
Myth: Credit scores reflect only how much debt you have. Fact: They also consider payment history, credit utilization, and length of credit history.
Myth: Closing old credit accounts boosts your credit score. Fact: It can reduce your credit history length and increase your credit utilization ratio.